Invoice processing best practices: replacing paper processes with accounts payable automation
Wednesday, 4 May 2016
Vice President, Global Product Marketing
At Basware, we’ve identified four stages that organizations go through as they become more automated and collaborative in their financial and procurement processes.
Figure: 4 Steps to Financial Agility. We describe the four stages in our free e-book: A Guide to Networked Purchase-to-Pay. Download your free copy today.
In this blog, I’ll review the characteristics of the Efficient Company.
We call companies that are just starting out on their journey to true financial agility ‘Efficient’ companies. The Efficient Company is focused on replacing paper processes with invoice automation. As paper invoices convert to e-invoices, they become a rich source of information about spend and cash commitments.
By getting invoice processing under control, Efficient Companies have better insight into spend across the business and are able to reduce costs by improving process efficiency and eliminating paper.
Another key benefit is improved payment cycle times, which makes it possible to negotiate more favorable payment terms with key suppliers, making more cash available to the business.
Improved spend visibility provides a baseline for procurement and finance to share KPIs and define a holistic procurement strategy for the entire business.
And business leaders have a better picture of how cash is flowing through the business and can make better spend and investment decisions.
The KPIs of Efficient companies generally look something like this:
To learn more about the four steps that most companies go through on their journey to true financial agility, read our free ebook: A Guide to Networked Purchase-to-Pay .